Whether you’ve recently decided to make the leap into entrepreneurship or you’re already an entrepreneur, you should know that business services are a viable option. The costs and barriers to entry are low, and the demand for business services is on the rise.
Demand for business services increases with business growth
Getting a leg up on the competition may be as simple as signing up for a free trial of Netflix or LinkedIn. Business services abound. From legal to accounting to IT to logistics, there’s something for everyone. Having a centralized contact center is a good way to ensure that customer service is a top priority. A company can also reduce costs by leveraging the collective intelligence of its employees. A recent study showed that a company’s average productivity can improve by as much as 25%.
Career path for former “white collar” workers
Several firms are now partnering with high schools to train new collar workers. This is a great way to groom a workforce and to avoid a skills shortage.
The term “white collar” was first used in 1935, when Upton Sinclair wrote about the importance of administrative workers. Today, white collar workers perform desk jobs, such as accountants and attorneys, in an office setting. In addition to completing administrative tasks, white collar workers apply their knowledge of human resources management, accounting, law, and other relevant fields to a variety of individual situations.
Cost of starting a business
Getting a business license can be an expensive endeavor. Many counties and states require a business license and permit. The cost can range from a few hundred dollars to several thousand dollars.
A business license may also include a liquor license and food handlers permit. These are important pieces of paperwork, but they are not the only items that a business needs to get started.
A good accountant will be able to tell you exactly what you need to know about startup costs. The cost can vary from hundreds of dollars to several thousand dollars depending on your needs.
Low barriers to entry
Whether you’re starting a business or looking to expand, identifying and overcoming barriers to entry is crucial. Barriers to entry are defined as “any condition that prevents the instantaneous creation of a new firm in a market,” and they can affect the competitive landscape. They can be a natural, government-imposed or strategic obstacle.
The most common natural barrier to entry is the need to build a customer base. Establishing a consumer base can take years. A new entrant will find it difficult to get customers, especially if the market is dominated by a large and established firm.